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Crane Company issues $2.2 million, 20-year, 9% bonds at 99, with interest payable on December 31. The straight-line method is used to amortize bond discount.
Question1 : Prepare the journal entry to record interest expense and bond discount amortization on December 31, 2022, assuming no previous accrual of interest.
Date Account Titles and Explanation Debit Credit
dec31 interest expense --------
cash 198,000
discount on bonds payable ---------
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